It is the oil price crash of 2014, and the Norwegian government is fearing a recession. What policies can be enacted to avoid a recession?

In this scenario, it would be suitable to use some Keynes. There are two parts to this. The first part is lowering taxes and increasing government spending. The second part is decreasing interest rate. By having more money flowing in the economy, there should be an increase in demand (points to graph).

Answered by Johannes R. Economics tutor

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